Dutch in tax war to lure Unilever away from London

Unilever, which also owns Dove, Persil and Magnum ice creams, is understood to be close to a decision that could see it quit the City.

The Dutch government has been accused of waging ‘war’ on the UK and using Brexit to lure Marmite-maker Unilever away from London.

Unilever, which also owns Dove, Persil and Magnum ice creams, is understood to be close to a decision that could see it quit the City.

It currently reports to both the London and Amsterdam stock exchanges but is considering whether to drop one to simplify company operations.

Melt away: Unilever owns brands Magnum and Marmite

In the latest effort by the Netherlands to win over firms with dual London listings, such as Unilever and Shell, new Dutch prime minister Mark Rutte has proposed a cut in the country’s 15 per cent tax on dividend payments made to shareholders.

Unilever put its dual legal structure under review in April shortly after it fought off a £115billion takeover approach from US rival Kraft Heinz.

Experts have suggested Brexit could be key in the FTSE 100 company’s decision and that efforts by the Dutch government could seal a move across the North Sea.

Unilever’s Dutch chief Paul Polman, whose 7,500 UK employees are not expected to be directly affected by the change, was a pro-Remain campaigner.

Bart Snels, an MP for political party GroenLinks, told The Mail on Sunday: ‘The Dutch government is using the uncertainty caused by Brexit to start a tax war with the UK and entice multinational corporations like Unilever to stay in the Netherlands, by abolishing our dividend tax.’

Former Business Secretary Vince Cable said: ‘If Unilever chooses Amsterdam over London, then that would send a very bad signal about London’s attractiveness to good companies.’

Meanwhile, EU leaders are to vote tomorrow on where the European Banking Authority and European Medicines Agency – bodies currently based in London – should be relocated ahead of Brexit.